Infosys share price jumped as much as 1.89 per cent in the morning trade on Monday after the company announced a definitive agreement to acquire Noah Consulting

Infosys share price jumped as much as 1.89 per cent in the morning trade on Monday after the company announced a definitive agreement to acquire Noah Consulting (Photo: Reuters)

Infosys share price jumped over 1.5 per cent on Monday after the company announced a definitive agreement to acquire Noah Consulting, LLC, a leading provider of advanced information management consulting services for the oil and gas industry. This acquisition was an all-cash deal, with an aggregate purchase consideration of $70 million.

At 11.18 am, Infosys share price was at Rs 1,112, up 1.67 per cent, against Rs 1,093.75 on Friday. The share price of the global IT major opened at Rs 1,100 and had touched a high and low of Rs 1,114 and Rs 1,100, respectively, in trade so far.

The transaction is expected to close before the end of the third quarter of FY 2016, subject to customary closing conditions.

On the acquisition, Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, “The acquisition is small and would not impact the financials in a big way. We maintain our ‘Buy’ with a price target of Rs 1,306.”

Also, Infosys had announced a collaboration with IBM on Friday (post market hours), in which the company will tap Bluemix, IBM’s Cloud platform to rapidly prototype, develop and deploy the next generation of Cloud apps for its global client base.

In the past one year, the share price of Infosys gained 13.18 per cent to Rs 1,093.75 on October 16. Sensex gained 4.67 per cent during the same period.

For the quarter ended September 30, 2015, Infosys posted consolidated net profit of Rs 3,398 crore, up 9.75 per cent, against Rs 3,096 crore in the same quarter quarter a year ago.